Fergie's Tech Blog

Cringely thinks Apple’s going to stop making iPods

Peter Rojas posts over on Engadget that:

Tech pundit Robert X. Cringely is floating the idea that sooner or later Apple is going to license the iPod to other manufacturers and get out of the business of selling iPods (you have to scroll down to the bottom of his most recent column). The fact that Stevie J. pulled the plug on Mac clones notwithstanding, here’s his line of reasoning: Right now they’re using the iTunes Music Store to drive sales of iPods, but Apple continues to face downward price pressure on the iPod and eventually they’ll be forced to cut margins on the iPod (all of ‘em) to the point where they’ll no longer be all that profitable (at least not at the kinds of margins that Apple is used to enjoying).

posted by Fergie @ 5/08/2005 10:54:00 AM